Blackstone To Change From Partnership To Corporation; Q1 Profit Up 34%

Blackstone (BX) announced conversion from a publicly traded partnership to a corporation, expected to be effective July 1, 2019. The company said this paves the way for equity value appreciation by removing ownership restrictions and by expanding global investor universe. Blackstone expects the conversion to produce significant potential benefit at relatively modest additional tax cost. Estimated annual dilution to distributable earnings per common share is approximately 2-5% on an average over the next 5 years. Over the longer term, the dilution is projected to be approximately 12-13%.

Stephen Schwarzman, CEO, said, "We believe the decision to convert will make it significantly easier for both domestic and international investors to own our stock and should drive greater value for all of our shareholders over time."

For the first-quarter, distributable earnings were $538 million or $0.44 per unit, up 7% year-over-year. Fee related earnings were $374 million or $0.31 per unit, up 11%. Net income per common unit was $0.71, an increase of 34% over prior year. On average, 13 analysts polled by Thomson Reuters expected the company to report profit per share of $0.53 for the quarter. Analysts' estimates typically exclude special items.

First-quarter total revenues were $2.03 billion, up 14% from prior year. Total investment income rose 9% to $1.15 billion. Total Assets Under Management was $511.8 billion, up 14% from previous year.

Blackstone has declared a quarterly distribution of $0.37 per common unit to record holders of common units at the close of business on April 29, 2019. This distribution will be paid on May 6, 2019.

Shares of Blackstone were up more than 3% in pre-market trade on Thursday.

Alibaba is upgrading its intellectual property system using blockchain technology, according to local news outlet Sohu. Alibaba Platform Management expects this to benefit mainly small and medium-sized enterprises, brands and entrepreneurs. The technology will be fully implemented in September, and thereafter, the company intends to expand it to the field of digital copyright protection.

Electronics retailer Best Buy Co., Inc. (BBY) reported Thursday a 27 percent increase in profit for the first quarter from last year, which was impacted by restructuring charges, and higher revenues. Both adjusted earnings per share and revenues for the quarter topped analysts' estimates. The company also provides guidance for the second quarter and reiterated its outlook for the full-year 2020.

While reporting financial results for the second quarter on Thursday, Hormel Foods Corp. (HRL) lowered its earnings and net sales guidance for the full-year 2019.
For fiscal 2019, the company now projects earnings in a range of $1.71 to $1.85 per share, and net sales between $9.70 billion and $10.20...